Interesting article about Oil

wanghong

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  p" U2 l2 t) k3 [: N, L1 iBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
# A5 x/ ]6 r1 }0 _! z4 W. Ucompanies producing Jet fuels but Biofuels. Also no wonder if some of
) _, |' c* {1 f$ Rthese oil producer will go bankrupt or out of the business even if
+ [5 r: {6 I; M7 f. q* lcrude prices improves. This implies also to good names such as Shell,
  M" j0 E, M- H( B  A  \% rEXXON, BG, BP, Cheveron ....xyz.. oils

, F' B, r$ c* C( \& |% A$ b  ^1 hRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
3 y" z* \  b6 H8 `# D7 h

There are several reasons the price of oil is decreasing in the face
( P1 }+ I- y+ _: B) E( Iof so much news. These reasons are:
# I& E- o% X7 @- b  {4 G

! p; b( d8 t9 }* K" ~1. New oil has been found in Canada, Montana, North & South Dakota and
/ z! W* I1 d* I# V* nin the ocean near Brazil. Each of these oil fields has more oil than
  H# W. l; }9 Q$ A1 z% bArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
( b) ~7 n# p1 ], bThis is the largest find in North America.

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% o1 x7 ~: ?0 E" @- @5 K9 y* `8 S, [3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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# E9 [1 {6 i7 f) _; C9 g4. Production of bio-fuels is beginning to reach critical mass. Bio
* n$ U2 e7 E9 F4 r, rfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
; ?. k: e; t% fracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
# V& I8 s0 K* B/ X- P# Pto bio-diesel producers. One pork processing plant in Oklahoma is
0 j" U3 L7 @. Tproducing 30,000 gallons of bio-diesel per day from pork fat.

* z- V, {6 k9 C( M
& y5 f0 D5 v+ C& P5 x6. There are 99 nuclear reactors in various stages of planning and
, R# x3 g' P! R4 W2 t# t8 i( Q4 `4 Cconstruction around the world at this time. Several hundred more are
: H" K1 D# {" Z- C* ^* e9 f/ Fexpected to be built in the future. Much of the energy they produce
will replace oil.

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7. Every company in any form of transportaion business is replacing
  l* g6 ^: x8 A1 G  [. O9 G1 g* dolder equipment such as trucks, airplanes, train engines, ships, etc.
5 E3 t3 U/ H8 [2 J! Vwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
8 a/ W* L, A! w* a, O6 {. lequipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
' [. e' E: E7 t# afuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
' g) e0 d4 n  C' m4 i  a; eoil.
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; }# S" s8 N4 G) o7 r# F: r/ v' }
4 e4 h; {- d+ u0 B$ Y9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
! O) L/ Q2 u( s% Uoil wells.
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4 B$ L! v0 Y; C6 _$ y1 S. h
2 Z/ H/ L3 k; L7 N" E+ u10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


9 E& s+ l; u0 {: T# D2 k% tEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
1 R1 o0 e0 d4 Mchanging. The important thing is that OPEC no longer has the ability
6 e/ q# u/ x# y5 {" Pto control oil prices.
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$ ^1 {* J1 T7 E: ~  x% q
" N/ ]% v& _, ~% ^% H% TWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
* b% p5 ?3 q# W7 g8 Kvalue .....
0 F! |" j4 `- G) r5 {3 u7 NIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
/ W% `' u5 L" K! u* P; y2009 ... FYI-Only